Starting and Naming a Business
Starting & Naming a Business
Betty Wilson’s venture of opening a Christian Coffee House in Belmont, NC, presents her with abundant opportunities in selecting a business form. She is considering the following types of entities: 1) franchise, 2) sole proprietorship, 3) partnership of some sort, 4) corporation of some sort, 5) LLC, or 6) even as a joint venture. We will briefly explore each business option and give Betty concise recommendations as to what business form to pursue as well as what business partners to engage.
A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan …show more content…
The Internal Revenue Service (IRS) normally does not recognize a joint venture as a legal entity so it is treated as a partnership (Staring and Naming a Business Presentation, 2012, Slide 8). This is advantageous in that the partners equally distribute authority to govern, share profits and losses, and contribute labor, money, property, efforts, and skills to expand the success of the business project (Kubasek, et al., 2012, p. 759). According to the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28), the only type of qualified joint venture that cannot be treated as a partnership it that of an unincorporated business between a husband and wife. The main disadvantages of joint ventures are uneven collaboration, expertise, management styles, and research to reinforce sound decisions.
Business name. To determine corporate name availability, Betty must comply with statutory requirements to allow her to name the coffee shop “Gathering Place.” After utilizing the search engine for the Department of the Secretary of State North Carolina to determine the name availability “Gathering Place,” generating fifteen results. The businesses range from motels, publishers, books stores, churches, and pastry and coffee shops. Under the hospitality industry, two food service businesses resulted that are Gathering Place Café & Sweet Treats, Inc. located in